This paper shows that differences in various non-cognitive traits, specifically the big five, positive and negative reciprocity, locus of control and risk aversion, contribute to gender inequalities in wages and employment. Using the 2004 and 2005 waves of the German Socio-Economic Panel, evidence from regression and decomposition techniques suggests that gender differences in psychological traits are more important for inequalities in wages than in employment. Differences in the big five, in particular in agreeableness, conscientiousness and neurocitism matter for both wages and employment. For the latter, the results also show a large effect of differences in external locus of control.